Coronado Global Resources Inc. · ASX:CRN
Coronado Global Resources — FY2023 Earnings Presentation
39 slides from Coronado Global Resources's earnings presentation, Feb 20, 2024
Slide 1: ASX Announcement: Investor Presentation – 2023 Full Year Results
ASX Announcement 20 February 2024 Investor Presentation – 2023 Full Year Results Coronado Global Resources Inc. (ASX: CRN) releases the attached Investor Presentation for 2023 Full Year Results. For personal use only This announcement was authorised for release by the Board of Coronado Global Resour
Slide 2: Full Year 2023 Results Presentation
For personal use only Douglas Thompson Gerhard Ziems Full Year 2023 Results Presentation Managing Director & CEO 20 February 2024 Group Chief Financial Officer All units in U.S. dollars and metric tonnes, unless otherwise stated
Slide 3: Important Notices and Disclaimer
Important Notices and Disclaimer For personal use only The material contained in this presentation is intended to be general background information on Coronado Global Resources (Coronado) and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is
Slide 4: 2023 Highlights
For personal use only 2023 Highlights Douglas Thompson Managing Director & CEO CRN – FY23 Results Presentation 3
Slide 5: 2023 Highlights
2023 Highlights Higher waste and ROM coal production rates; Improved safety performance; For personal use only Met Coal Organic Growth plans progressing Solid Progressing operational Prudent Organic emission Group Safety performance capital Growth Plans reduction Total delivering Group management pr
Slide 6: Passionately committed to the health & safety of our people
For personal use only Passionately committed to the health & safety of our people CRN - FY23 Results Presentation 5
Slide 7: Health and Safety: Our People, Our Highest Priority
Health and Safety Our People, Our Highest Priority For personal use only Australian Operations (TRIFR) 10 Australian Operations Industry Average 8 6 -80% 4 2 0 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 US Operations (TRIR) 4 U.S. Operations Industry A
Slide 8: Coronado Investment Proposition
Coronado Investment Proposition For personal use only Shareholder Value Critical Commodity Operational Excellence Capital Management • Met Coal is a critical material found • Completed significant investment in • Strong Balance Sheet with in every renewable energy transition waste movement deficit –
Slide 9: Value Enhancement – a well advanced executable plan
Value Enhancement – a well advanced executable plan Higher Tonnages / Lower Costs / Lower Capex / Higher Margins For personal use only Estimated Saleable Production (Mmt) Estimated Mining Costs / tonne Estimated Capital Expenditure ➢ Higher Margins forecast from higher Met Coal sales 107.6 volumes a
Slide 10: Capital Management & Financial Performance
For personal use only Capital Management & Financial Performance Gerhard Ziems Group Chief Financial Officer CRN - FY23 CRN Results - FY23 Presentation Results Presentation 99
Slide 11: Coronado's Capital Management Strategy
Coronado’s Capital Management Strategy For personal use only 1. Strong Balance Sheet Maintaining a strong balance sheet with enhanced liquidity and prudent debt levels. 2. Shareholder Returns Fundamental strategy is to return funds to Shareholders. 3. Organic Growth Prioritise growth expenditure pro
Slide 12: FY 2023 Summary Financial Results
FY 2023 Summary Financial Results Strong Balance Sheet maintained; For personal use only High closing working capital balance as of 31 December 2023 Total Group Revenues $2.9 billion 91.4% of Total Group Revenues (2nd highest in history) from Met Coal sales Group Realised Price Per Tonne of Availabl
Slide 13: Cash Flow Movement and Liquidity
Cash Flow Movement and Liquidity ($M) Substantial capital investments for future growth in FY23 For personal use only Coronado generated $268 million in FY 2023 Free Cash Flow Operating Cash Flows and $23 million in 81 Free Cash Flow in FY 2023. 29 382 Corporate tax ($147 million), royalties (AUS 69
Slide 14: FY 2023 Fixed Biannual Dividend
FY 2023 Fixed Biannual Dividend Coronado declares its biannual fully franked fixed For personal use only dividend of $8.4 million (US 0.5 cents/CDI) Key Dates 20 February 2024 12 March 2024 4 April 2024 Declaration of $8.4 million. Dividend record date Dividend payment date (US 0.5 cents/CDI) fully
Slide 15: Metallurgical Coal & Steel Markets
For personal use only Metallurgical Coal & Steel Markets CRN - FY23 Results Presentation 14
Slide 16: Metallurgical Coal has a Long-Term Future
Metallurgical Coal has a Long-Term Future Steel is the No. 1 critical commodity to the development of a low carbon future Low to None High For personal use only Electricity Concentrated Solar Electric Geothermal Hydro Nuclear Bioenergy Hydrogen Wind power networks solar photovoltaic vehicles Steel (
Slide 17: Energy transition is dependent on Steel; Met Coal is a critical material
Energy transition is dependent on Steel; Met Coal is a critical material Steel is used in almost every aspect of the world’s infrastructure, including renewable energy infrastructure For personal use only Sydney Harbour Bridge (1) Average Electric Vehicle (3) 52,800,000 kg steel 900 kg steel 41,200,
Slide 18: Steel production generated primarily from Blast Furnace methods
Steel production generated primarily from Blast Furnace methods Met Coal underpins the primary Steel production method in Asia and Globally through 2050 For personal use only Total Global Crude Steel Production (Bt) Total Global Crude Steel Total Asia Crude Steel Production Method Production Method
Slide 19: Coronado Reserves and Resources
Coronado Reserves and Resources Coronado maintains long-life operating assets >20 years; Met Coal resources >2 billion tonnes. For personal use only 1,000 Reserves (Mmt) 2,500 Resources (Mmt) 838 2,115 800 2,000 600 1,500 400 1,000 936 290 197 514 200 154 135 500 203 248 50 159 12 55 0 0 Notes: Char
Slide 20: Coronado's Unique Diversification Advantage
Coronado’s Unique Diversification Advantage Our high-quality Met Coal operations support customers on five continents For personal use only Met Coal Product Offering by Segment (1)(2)(3) Australia U.S. 6% 29% HCC Low-Vol PCI 39% High-Vol SCC 55% Canada 71% Europe Japan USA China Geographical Coal Re
Slide 21: Met Coal prices well above long-term average price
Met Coal prices well above long-term average price Australian Premium Met Coal index $316 per tonne (12 Feb 2024); Higher pricing for longer For personal use only Metallurgical Coal Price Indices (U$/t) (1) In 2023, Average Australian Met Coal index 700 PLV HCC FOB AUS prices fell 19% compared to
Slide 22: Steel Demand Outlook Remains Firm In Key Markets
Steel Demand Outlook Remains Firm In Key Markets Infrastructure growth in India forecast to grow substantially For personal use only Annual Forecast GDP Growth Percentage (1) India Total Crude Steel Production (Mt) (2) 6.4 2024 2025 2026 531.3 6.1 6.0 4.8 4.6 4.6 +277% 3.1 220.5 2.3 2.1 2.2 173.4 18
Slide 23: Strong Met Coal Demand Through 2050
Strong Met Coal Demand Through 2050 Global export demand growth for Met Coal is underpinned by For personal use only India; Primary source growth expected to be from Australia. Global export Met Coal demand is forecast to Global Export Met Coal Supply (Mt) Global Export Met Coal Demand (Mt) grow to
Slide 24: FY24 Initiatives, Guidance & Organic Growth Investment Plans
For personal use only FY24 Initiatives, Guidance & Organic Growth Investment Plans Douglas Thompson Managing Director & CEO CRN – FY23 Results Presentation 23
Slide 25: FY 2024 Guidance and Key Strategic Focus Areas
FY 2024 Guidance and Key Strategic Focus Areas Asset optimisation of our existing assets and continued investment in highly accretive organic For personal use only growth projects are our key strategic focus areas Metric Actual Guidance (metric tonnes / U.S. dollars) FY 2023 FY 2024 Coronado Strateg
Slide 26: Curragh Complex
Curragh Complex Operating restructure optimise efficiency and production For personal use only Curragh is one of the largest coking coal mines on the planet with 936 million tonnes of resources, approx. 20-year mine life. Produces a range of HCC, SCC and PCI products with a loyal customer base.
Slide 27: Curragh Underground Project
Curragh Underground Project Met Coal uplift 2 Mtpa, 2nd quartile cost curve, Low Capex, 13.5 Mtpa by 2025 For personal use only Coal Reserve, Quality and Mining Method Underground Bord and Pillar operation; Access utilizing existing open cut pit highwall in S-Pit Substantial high-quality Met coa
Slide 28: Potential Substantial Future Value Uplift – Curragh
Potential Substantial Future Value Uplift – Curragh (1) Estimated EBITDA uplift of ~$290 million(3) per year upon expiration of existing Stanwell coal supply For personal use only arrangement (CSA) and Rebate from late 2026 / early 2027 Curragh Valuation Uplift: ➢ Estimated cost benefit of $120 mill
Slide 29: U.S. Operations
U.S. Operations Met Coal Uplift +1 Mtpa; 7 Mtpa by 2025; Optimised operational performance For personal use only Buchanan Mine Buchanan is one of the largest producing and lowest cost Met FY 2024 Priorities: Coal underground operations in ➢ Improved flexibility and productivity gains Northern Dist
Slide 30: Organic Growth - Buchanan
Organic Growth - Buchanan Buchanan capital works remain on target underpinning U.S. growth plans to produce 7.0Mtpa by 2025 For personal use only Mining underway in the newly developed South District, utilising new equipment. Capital works continue to invest in the construction of a new surface
Slide 31: Rehabilitation, Emissions Reduction and Sustainability
For personal use only Rehabilitation, Emissions Reduction and Sustainability CRN – FY23 Results Presentation 30
Slide 32: Significant Rehabilitation Works Completed Past Years
Significant Rehabilitation Works Completed Past 2 Years For personal use only 269 hectares completed since January 2022 (Curragh 171ha, Logan 95 ha, Greenbrier 13ha, Buchanan 4ha); More works planned in FY24 at Curragh following heavy wet weather in late FY23 Logan Surface Greenbrier Curragh North C
Slide 33: Buchanan Ventilation Air Methane (VAM) Abatement Projects
Buchanan Ventilation Air Methane (VAM) Abatement Projects For personal use only 30% reduction on track. Proven technology delivering tangible reduction in emissions VAM units utilise the latest technology (RTO – Reductive Thermal Oxidation) to convert fugitive methane gas emissions to CO2. Since com
Slide 34: Curragh Gas Project
Curragh Gas Project Wells Operational. Surface production facility installation For personal use only works complete Curragh’s gas project is targeting the capture and beneficial use of open-cut waste mine coal gas from operations, with priority downstream use cases being for power generation and us
Slide 35: Questions
For personal use only Questions CRNCRN - FY23 Results - FY23 Presentation Results Presentation 3434
Slide 36: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only This report discusses results of the Company’s operations and includes references to and analysis of certain non-GAAP measures, which are financial measures not recognized in accordance with U.S. GAAP. Non-GAAP financial measures are used by
Slide 37: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Realised met pricing reconciliation for the year Total consolidated mining costs per tonne reconciliation For the year ended For the year ended ended 31 December 2023 Australia United States Consolidated (US$ thousands, except for volume data
Slide 38: Reconciliation of Non-GAAP measures
Reconciliation of Non-GAAP measures For personal use only Adjusted EBITDA reconciliation For the year ended For the year ended Realised total pricing reconciliation For the year ended For the year ended (US$ thousands) 31 December 2023 31 December 2022 (US$ thousands, except for volume data) 31 Dece
Slide 39: Contacts
Contacts For personal use only Investors Registered Office Media Andrew Mooney Coronado Global Resources Inc. Helen McCombie Vice President Investor Citadel Magnus Relations & Communications Level 33, Central Plaza One 345 Queen Street +61 411 756 248 +61 458 666 639 Brisbane, QLD, Australia, 4000 h
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